Notice of Execution of Absorption-type Company Split Agreement for Succession of Part of Canon Medical Systems Corporation’s Business through Simplified Absorption-type Company Split

Overview of the Organizational Restructuring

Canon Inc. will implement a simplified absorption-type company split with Canon Medical Systems Corporation (CMSC) as the splitting company and Canon Inc. as the succeeding company. All businesses of CMSC except for domestic sales, repair, and maintenance will be succeeded, with the effective date scheduled for April 1, 2026. The legal procedure follows a simplified absorption-type company split under Article 796, Paragraph 2 of the Companies Act, and does not require approval at the general meeting of shareholders. There will be no allotment of shares or changes to capital due to the succession. The rights and obligations to be succeeded include assets, liabilities, contractual positions, employment relationships, and permits/approvals, with liabilities to be assumed in a joint and several manner.

Purpose and Background of the Restructuring

The purpose of this absorption-type company split is to position the medical business as one of Canon’s core pillars and achieve high profitability and high growth through business structural reform and organizational strengthening. By integrating the previously two-company system into one, Canon aims to maximize utilization of technology, quality control, and cost reduction know-how, reviewing development, manufacturing, and management operations to improve profitability. Additionally, CMSC will continue to operate as the domestic sales and service company, strengthening customer relations while aiming for business expansion in the medical-related market, which is expected to sustain stable growth.

Impact on Shareholders and Investors

This absorption-type company split involves succession of the business division of CMSC, which is wholly owned by Canon Inc., and therefore does not require approval at the general meeting of shareholders, nor involves allotment of shares or changes in capital. Accordingly, there will be no impact on capital structure or dividend policy. The impact on consolidated financial results is expected to be minor, and the effect on investors is limited.